Goldman Sachs increases S&P 500-ROOTARGE, expects interest rate letings faster

Goldman Sachs has adjusted his expectations for the US stock market upwards. Analysts from the investment bank now foresee that the US Central Central Bank will start reducing interest in September, three months earlier than they previously predicted.

This is also beneficial for Bitcoin, because the digital currency often moves synchronously to the S&P 500.

Bullish for shares and Bitcoin

According to Goldman Sachs, there is more than 50% chance that the US central bank will choose a reduction of 25 basic points during the interest meeting in September.

This estimate is based on new economic signals and the expectation that Trump’s taxes will cause less damage than initially thought.

The bank’s economists now count on three consecutive reductions of 25 basic points in September, October and December this year, and then in March and June of 2026.

The prospect of lower interest rates is partly because, according to Goldman, it has become a bit more difficult to find work in the United States, even though the labor market as a whole remains healthy.

That would mean that Goldman counts on interest rate letings to reduce the chance of a recession, not because there are actually problems that scream for lower interest rates.

Higher price goals for the stock exchange

Due to the changed interest TV, Strategist David Mericle and his team have adjusted their expectations for the US stock market. The target for the S&P 500 in twelve months has been increased from 6,500 to 6,900 points.

The goal for the end of 2025 was also raised from 6,100 to 6,600 points. At the time of writing, the S&P 500 acts at 6,225 points. The stock market index has risen by almost 4% in the past month, and recorded a profit of 0.5% in the last five trading days.

Goldman Sachs’s new interest in the interest expectations are in line with what the market itself now also estimates. Traders on the Futuresmarkt currently estimate the chance of an interest rate reduction in September at 62%.

It is the combination of a cooling labor market, milder inflation and limited economic damage caused by Trump’s trade policy, which ensures that investors regain confidence in more stimulating monetary policy of the US Central Bank.

Bitcoin and the S&P 500 seem to anticipate that, because the rates are currently doing well. It is therefore important to know that markets do not respond, but anticipate.